China Life Insurance (02628) plans to sell 33.73% of its shares in pension insurance companies to controlling shareholders

Zhitong Finance App News, China Life Insurance (02628) announced that the company plans to enter into a company share transfer agreement with the controlling shareholder Group Company by December 31, 2026. According to this, the company will sell 33.73% of its shares in the pension insurance company to the group company at a cost of approximately RMB 4.146.4 billion; and the asset management company, a non-wholly-owned subsidiary of the company, plans to enter into an asset management company share transfer agreement with the group company before December 31, 2026. According to this, the asset management company will sell 3.53% of the shares of the pension insurance company to the group company. The cost was approximately RMB 434 million.

After the sale matters (including the sale of the company and the sale of the asset management company) are settled, the share ratio of the pension insurance company held by the company will be reduced from 70.74% to 37.01%, and the asset management company will no longer hold any shares in the pension insurance company. Therefore, the pension insurance company will no longer be a subsidiary of the company, and its financial performance will no longer be consolidated into the group's financial statements.

According to reports, pension insurance companies are a national professional pension finance institution that fully serves the construction of the country's three-pillar pension insurance system, providing customers with pension finance products and services such as enterprise annuity fund management, occupational pension fund management, basic pension fund management, commercial pension management, and pension security management. On the date of this announcement, the pension insurance company was a non-wholly-owned subsidiary of the company. The company, the security group, the group company, the asset management company and China Cheng Trust held 70.74%, 19.99%, 4.41%, 3.53% and 1.33% of its shares respectively.

After the sale is settled, the group company and the company will hold 41.67% and 37.01% of the pension insurance company's shares respectively. The group company will become the largest shareholder of the pension insurance company. This is conducive to mobilizing a wider range of internal and external resources, supporting the high-quality development of pension insurance companies, and actively cultivating new growth poles for pension finance. At the same time, by continuing to hold 37.01% of the pension insurance company's shares, the company is the second largest shareholder of the pension insurance company. It will continue to participate in major decisions on the operation and management of the pension insurance company and continue to share the dividends of the future development of the pension insurance company.